U.S. sugar policy, a source of conflict that predates the American Revolution, is drawing fire for raising consumer prices as lobbyists and lawmakers rally to defend a system that restricts the sweetener’s supply.
A program that limits imports and props up prices for less than 5,000 growers survived a challenge yesterday from Pennsylvania Republican Senator Pat Toomey during the farm-bill debate. Supporters from cane- and beet-producing states last week defeated New Hampshire Democrat Jeanne Shaheen’s effort to phase out sugar support altogether by a 50-46 margin.
The near-successful assault against the decades-old policy shows even well-entrenched farm programs are vulnerable to lawmakers concerned about the economy and budget this year, said Tom Earley, a sugar analyst with food research firm Agralytica, formerly Promar International, in Alexandria, Virginia.
“This is one of the most intrusive, anti-market policies that we have,” Earley said. “If our producers are as efficient as they claim, we do not need this program.”
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